REACHING YOUR DESTINATION

Transcription

1 Destination: Retirement REACHING YOUR DESTINATION Service Retirement Guide

2 Table of Contents General Information Introduction iii Service Credit Service Credit Qualifying Service Credit Military Service Credit Other Uniformed Service School Board Service Other School or Government Service Cincinnati Retirement System Early Retirement Incentive (ERI) Deciding When to Retire Eligibility for Retirement Age + Service Credit + Salary = Pension Calculating Your Own Pension Pension Tables Choosing a Retirement Plan Plan Considerations Social Security Social Security and SERS The Government Pension Offset (GPO) The Windfall Elimination Provision (WEP) Filing Your Application The Application Process Completing Your Retirement Application Retirement Application Checklist Revised 4/2016 Service Retirement Guide i

3 Once You ve Retired About Your Retirement Allowance Payment Cost-of-Living Adjustment (COLA) Power of Attorney and Guardianship Taxes Reemployment Support and Division of Property Orders Death Benefit Questions and Answers Questions and Answers Glossary of Terms Terms Contact Information Address, Telephone Numbers, and Website Directions to SERS Holidays ii School Employees Retirement System of Ohio

4 General Information Introduction The School Employees Retirement System of Ohio (SERS) is a statewide defined benefit plan that provides retirement, disability, and survivor benefits to non-teaching employees of Ohio s public schools; including vocational, technical, and community schools; community colleges; and the University of Akron. As a member of SERS, this guide is intended to help you learn about your benefits as well as help you apply for retirement. We encourage you to attend a SERS Retirement Conference or PREP (Pre-Retirement Educational Program) Seminar. Retirement Conferences are geared towards members who are currently eligible or will be eligible for retirement within two years. PREP Seminars are most helpful for members who are mid-career or at least five years away from retirement. Conference and seminar dates and locations are available on the SERS website at SERS offers personal retirement counseling at the Retirement System s office Monday through Friday, 8:15 a.m. to 2:45 p.m. Appointments can be scheduled by calling SERS tollfree at Applying for retirement can be done by mail, with most questions answered by letters or telephone calls. If you have a number of questions, or if your questions are more complex, it may be helpful to schedule an office appointment. Free parking is available at SERS. Directions to SERS are on page 42. The information in this guide is current as of its publication date. Please be aware that eligibility requirements and pension formulas may change over time. In addition, the SERS Retirement Board can change health care coverage at any time. Service Retirement Guide iii

5 Retiree Cindy Nye iv School Employees Retirement System of Ohio

6 Member Cynthia Robinson Service Credit Service Credit Qualifying Service Credit Military Service Credit Other Uniformed Service School Board Service Other School or Government Service Cincinnati Retirement System Early Retirement Incentive (ERI)

7 Service Credit Service Credit The amount of your pension and eligibility for retirement is largely determined by the length of your service with the schools. Service credit also affects health care eligibility. Your pension may increase with additional earned or purchased service credit. Qualifying Service Credit In addition to increasing the amount of your monthly pension, a service credit purchase also may increase the number of years used to determine your health care premium. Other Ohio Retirement Systems There are three Ohio public retirement systems that are connected for the purposes of combining service credit. They are the School Employees Retirement System of Ohio (SERS); the State Teachers Retirement System of Ohio (STRS); and the Ohio Public Employees Retirement System (OPERS). SERS provides pensions for all non-teaching, non-certificated public school employees, STRS provides pensions for public school teachers and certificated administrators, and OPERS provides pensions for all employees of the state of Ohio, which includes city and county workers. If you are a member of more than one system, at the time of retirement, you may have all deposits, salary, and service credit combined for a greater pension and earlier eligibility to retire. Total combined service credit cannot exceed one year for any 12-month period. The system in which you have the greatest service credit is the one that pays the pension benefit. You also may refund from one system without affecting your concurrent service credit. Your concurrent service does not get reduced. It is possible, if you currently are working in a SERS job as well as an OPERS or STRS job, to retire from the highest paying position and keep working in the lower-paying position. For example, if you are a custodian and a township trustee, you can retire from the custodial position, assuming your salary is higher, and keep your trustee position. Both salaries will be used in the calculation of your pension. You must notify SERS if this is your intention, so we can properly inform the other system and gather the necessary information. If you are a member of more than one of these retirement systems, and you have any additional questions, please contact SERS toll-free at Granting Service Credit One year of service credit is granted upon completion of 120 or more days of school employment within the fiscal year, July 1 through June 30. For service of less than 120 days, SERS will grant a fraction of a year s credit. This fraction is determined by dividing the number of days paid by 180. As little as one hour of paid employment in a day will entitle you to credit for one day of service. A day of paid, used vacation, or used sick leave also is credited as a day of service. 2 School Employees Retirement System of Ohio

8 Fractional Service Credit For Year When Working Less Than 120 Days Days Percent Days Percent Days Percent Days Percent Days Percent Days Percent Added Service Credit You may be eligible to purchase additional service credit for past employment in Ohio s public schools or other public employment. You must purchase any service credit prior to your effective date of retirement. You may purchase this credit in a lump sum, in installments, or if the employer offers it, by tax-deferred payroll deduction. SERS also accepts rollovers and trustee-to-trustee transfers. Keep in mind that you cannot use a Partial Lump Sum Option Payment (PLOP) disbursement to purchase service credit. Please see pages for more information on the PLOP. Cancelled Service Credit If you are eligible, you may restore either all or part of the service credit cancelled by a withdrawal of your contributions. To become eligible, you must return to work in Ohio public service and earn at least years of service credit under SERS, STRS, OPERS, the State Highway Patrol, or Ohio Police & Fire Pension Funds. To restore cancelled service credit, you must pay the original refund amount plus the interest to date. Non-contributing Service You can purchase service credit for past school service for which membership in SERS was not required. You must pay the member contributions, plus interest, and might be responsible for the employer s share as well. Exempted Service If you filed an exemption form for school service after July 1991, or you had exempted service under OPERS or STRS, you may purchase the time. The cost is 20% of your current salary for each year of exempted service purchased. Service Retirement Guide 3

9 Compulsory Service Although rare, contributions sometimes are not collected when required. When this occurs, for service prior to July 1991, the employee is responsible for employee contributions plus interest; for service after July 1991, the employer is responsible for both employee and employer contributions, plus interest. Leave of Absence Up to two years of service credit, covering an employer-approved unpaid leave of absence (LOA), can be purchased. A LOA period begins on the first day of the approved leave for which contributions were not made, and ends when the approved leave ends or when the member returns to contributing service, whichever happens first. Service credit can be purchased in one-month increments. Service credit may be purchased for multiple leaves of absence. The total years purchased cannot exceed five years, and the maximum amount of service that may be purchased for a period is two years per occurrence. To purchase LOA service credit, the member must: 1. Provide certification from the employer that includes official approval of the leave, the beginning and ending dates of the leave, the number of days the member would have worked during the leave period, and the earnings the member would have received during the LOA. 2. Pay the School Employees Retirement System of Ohio (SERS) an amount equal to the employee and employer contributions at the rates in effect during the LOA period, and interest compounded annually from the first day of the year following the LOA period to the date of payment. Payments can be made by payroll deduction, or payment to the member s employer, who will transmit the payment to SERS. The member s employer must certify the earnings the member would have received during the LOA so SERS can calculate the cost to the member. This information is submitted on a Certification for Salary for Non-Contributing Service form. Workers Compensation You also can be granted free credit for time lost due to a school-related injury. There is a three-year limit to such credit. A copy of the award history must be submitted to determine if credit can be granted. Pregnancy Leave If you resigned because of pregnancy or adoption of a child, you may purchase service credit for this period of time. You must have returned to work by the beginning of the third school year after the resignation and earned a year of contributing service credit after the return to work. You may not purchase more than a total of two years of service credit. For each year of credit you must pay contributions based on the first year of full-time SERScovered employment after returning to work plus interest from the date of the return to work to the date of payment. Your employer at the time of the resignation also must pay employer contributions and interest. 4 School Employees Retirement System of Ohio

10 Military Service Credit Credit for certain types of military service can be purchased. However, no purchase is allowed if the service can be used in any other pension program. One year of service credit is granted for each 12 months of active military duty. SERS must be supplied with a copy of the discharge, or similar record, showing the dates of entry and separation from the military (Form DD214). Free Credit for Military Service If you worked in a SERS-covered position for at least one year before your active military service, you can claim up to 10 years of free service credit for your time on active duty. To meet this requirement, you must show entry into active military service directly from SERS employment. You must also return from active duty to some form of employment covered by either SERS, STRS, or OPERS within two years of your discharge and establish one year of service. Other Uniformed Service You may purchase credit for service formerly held as a contributor to one of the pension funds for Ohio police, firefighters, or highway patrol. No purchase is allowed if the service can be used in any other pension program. The cost of the service is based on the amount withdrawn and interest from the date of withdrawal from the original pension fund to the date of deposit with SERS. If the money is still on account, it may be transferred to SERS. School Board Service If you served as a school board member prior to July 1, 1991, you can purchase that credit. Credit is granted at.250 for each year of board service. The service cannot be purchased if it is concurrent with other service credit. School board time cannot be purchased more than 90 days prior to retirement. Other School or Government Service You can purchase credit for school service outside Ohio s public school system. Employment in properly accredited private or public schools, colleges, and universities anywhere in the country is included. You also can purchase credit for service with the federal government or another state retirement system. The position must be comparable to one normally covered in Ohio by one of the Ohio retirement systems. You may purchase a maximum of five years of government or other school service credit. However, the service credit to be purchased cannot exceed the total service credit you have with the Ohio public retirement systems at the time of purchase. After the out-of-state or other service, a member must work full time (earn one year of service credit in a school year) in order to be eligible to purchase the service credit. Service Retirement Guide 5

11 If you have Federal Civil Service credit, please contact General Services Administration to obtain the transcript of your employment at the address below: General Services Administration National Personnel Records Center (Civilian Personnel Records) 1411 Boulder Blvd. Valmeyer, Illinois In your request for verification of employment, give your full name, when and where you performed the work, an approximate date of federal service, and your Social Security number. If the General Services Administration cannot furnish information, then contact: United States Civil Service Commission Bureau of Retirement Insurance and Occupational Health Washington, D.C If you have other school system credit, contact SERS for the necessary certification form to be sent. Cincinnati Retirement System If you refunded contributions from the Cincinnati Retirement System, you can purchase that time with SERS. If your contributions are still on deposit, they may be transferred to SERS. Early Retirement Incentive Some employers offer eligible employees age 57 or older an incentive to choose early retirement. The Early Retirement Incentive (ERI) takes the form of added service credit only the employer can purchase. The purchased credit cannot exceed 20% of the credit already held by you. An employer may adopt a plan offering personnel one to five years of additional credit. Any plan must be in effect for at least one year. It must be offered to a minimum of 5% of the employees. However, the credit purchased must be used for immediate retirement. If this is not possible, no purchase can be made. If retirement does not take place within 90 days after notification from SERS that ERI credit has been purchased, SERS will cancel the purchase. Please contact your employer to see if an ERI program is available. 6 School Employees Retirement System of Ohio

12 Retiree Norma Stamp Deciding When to Retire Eligibility for Retirement Age + Service Credit + Salary = Pension Calculating Your Own Pension Pension Table Choosing a Retirement Plan Plan Considerations

13 Deciding When to Retire Eligibility for Retirement Retirement with SERS is a matter of eligibility. You must meet one of the age and service credit combinations that entitles you to apply for a monthly, lifetime pension. Several factors determine eligibility for retirement: your date of retirement, your age, and your amount of service credit. Eligibility for retirement through SERS is not the same as eligibility for Social Security. Call Social Security toll-free at for additional information. SERS offers two types of service retirement: full service retirement and early service retirement. For full service retirement, you will earn the maximum pension amount based on your service credit (how long you ve worked in an Ohio public service job) and final average salary (the average of the three highest years of salary). Early retirement benefits will be reduced to cover the cost of providing a pension over a longer period of time. Members who have more than 25 years of service credit before Aug. 1, 2017, must meet the following combinations. For full retirement benefits: be any age with 30 years of service credit be age 65 with 5 years of service credit For early retirement benefits: be age 55 with 25 years of service credit be age 60 with 5 years of service credit ELIGIBILITY TABLE Members who have fewer than 25 years of service credit on or after Aug. 1, 2017, must meet the following combinations. For full retirement benefits: be age 57 with 30 years of service credit be age 67 with 10 years of service credit For early retirement benefits: be age 60 with 25 years of service credit be age 62 with 10 years of service credit Members who will have fewer than 25 years of service credit as of Aug. 1, 2017, have the opportunity to retire under previous retirement eligibility requirements if they pay the actuarial difference between the benefit they would have received under the new requirements and the benefit they may receive under the previous requirements. To take advantage of this buy-up option, members must complete their payment in one lump sum on or before Aug. 1, Members can estimate their buy-up costs by using the calculator on the Member Account Login; however, the actual cost must be determined by SERS actuary upon request. Retroactive Retirement In some instances, school employees will leave employment before reaching eligibility age, and not file for service retirement until reaching age 62 or 65, thinking they should apply at the same time they file for Social Security benefits. Please refer to the above table to determine your first eligible date. The first payment will include all payments due from the time you first became eligible to retire. However, health care coverage cannot be retroactive. Therefore, it is best to apply for your retirement when you are first eligible. When filing for a retroactive retirement, we suggest you contact Social Security to determine any possible adjustments. 8 School Employees Retirement System of Ohio

14 If You Have Multiple Jobs If you have more than one job with a SERS employer, you may retire from the highest paying position and continue working in the lower-paying job(s). For example, if you are a custodian and a bus driver, and have two distinct salaries, those salaries will both be used in the calculation of your pension, and you can keep working in the lowest-paying job after you retire. You must have distinct salaries or individual contracts, or work for more than one SERS employer to do this. If you work under Ohio Public Employees Retirement System (OPERS) or State Teachers Retirement System (STRS) in addition to SERS, you might be able to retire from the highest paying position and continue in the lower-paying job. If you continue in the lower-paying position after you retire, you will be a reemployed retiree. Your original pension will not be affected by continuing to work in this lower-paying position. See page 36 for more details. Age + Service Credit + Salary = Pension Your pension is based on age, service credit, and salary. The age used in a pension calculation is your actual age at the time you retire. If you plan to retire July 1, but your birthday is July 15, it may be to your advantage to postpone your retirement date until August 1. However, one month s delay will mean one pension check lost. It may not be worth it. Only a comparison of the before and after estimates will supply the answer. All of your service credit is used in calculating your pension. All service credit must be purchased before your retirement date. Our Member Services staff can show you the pension amount before and after purchase of credit. In some cases, you can recover the cost of a purchase in two or three years by receiving a higher pension amount. For more information on purchasing credit, see pages 2-6. If you want SERS to send you an estimate of your payment, you must choose an actual retirement date, such as July 1, Even though this date may only be tentative, a date is necessary for calculating the correct age, service credit, and final average salary (highest three years of salary). SERS will review your file, and an estimate will be sent to you. In some cases, additional estimates will be included to help you determine your best options. The amounts given are meant only to provide you with an estimate of your pension and probably will differ slightly from the actual pension you receive at retirement. Helpful Hints to Consider: If you are a 12-month employee that works 5 days per week and receives credit for 120 days, you could retire January 1.* If you are a nine-month employee that works 5 days per week and receives credit for 120 days, you could retire March 1.* If you are a nine-month employee and receive stretch pay throughout the summer, you could retire July 1, rather than September 1. If you are under age 67 and have less than 30 years of service, retiring after your next birthday may increase your pension. *Please be aware that working less than 5 days per week will reduce your service credit. Service Retirement Guide 9

15 Calculating Your Own Pension Website You can create an online account and estimate your pension. Go to the SERS website at and click on the Member Account Login. After you create your account, follow the Benefit Calculator instructions. Using the Pension Tables These tables give a percentage figure to apply to your final average salary to find the pension amount on an annual basis. Retirement Prior to August 2017 Unreduced benefit - Any age and 30 years or Age 65 and 5 years Reduced benefit - Age 55 and 25 years or Age 60 and 5 years Attained Age at Retirement Years of Service Credit % 9.6% 10.0% 10.3% 10.6% 11.0% % 41.2% 41.2% 41.2% 44.0% School Employees Retirement System of Ohio

16 Retirement After August 2017 Unreduced benefit - Age 57 and 30 years or Age 67 and 10 years Reduced benefit - Age 60 and 25 years or Age 62 and 10 years Attained Age at Retirement Years of Service Credit % 14.3% 15.9% 17.7% 19.7% 22.0% % 41.3% % 66.0% 66.0% Service Retirement Guide 11

17 For example, if you are 58 years old and have total service credit of 27 years, your annual gross pension would equal 50.4% of your final average salary. Divide that figure by 12 to get your monthly pension amount. Covered earnings that average less than $3,909 per year will be credited with a flat $86.00 per year of service credit. Choosing a Retirement Plan Payment Plans When you apply for retirement with SERS, you will have to choose a payment plan. Depending on your circumstances, one payment plan may be a better choice than another. The decision must be based on personal factors such as health, finances, marital status, and other sources of income. The SERS staff will supply the necessary estimate(s) to help in your decision. We are available to discuss the advantages and disadvantages of each plan, but the final decision is up to you. It is important that you understand each plan. If you change your mind within 30 days of your first pension deposit, please contact SERS immediately. After 30 days, you can only change your payment plan under these limited circumstances: marriage remarriage divorce dissolution annulment death of your designated beneficiary The payment plan you choose is largely determined by whether or not you wish to provide for someone after your death. If so, your pension will be reduced. The amount of the reduction depends upon the payment plan you choose and the ages of those involved. No matter which plan you choose, your pension is for your lifetime. You are always assured the return of your contributions, regardless of the plan you choose. Any employee contributions remaining in the account must be paid to your estate if both you and your beneficiary die before your total contributions have been collected in benefits. Plan Considerations There are positives and negatives to every plan selection. The highest pension possible, a Plan B Single Life plan, provides only for you, the retiree. By choosing a Joint Life plan, you can make sure that a benefit will continue to your beneficiary after your death. Please see the following chart for a complete description of each plan. If you have questions, please contact SERS toll-free at School Employees Retirement System of Ohio

18 Payment Plans Available Plan A Joint Life One-Half to Spouse Half the retiree s gross monthly pension will be paid to the spouse upon the retiree s death. Once the spouse becomes the recipient, payment to the spouse is for his or her lifetime. Plan B Single Life Allowance No Monthly Payment to Beneficiary This plan pays the highest amount to the retiree, but ceases with the retiree s death. If all member contributions have not been recovered in the form of monthly benefits, the remainder is paid in a lump sum to the designated beneficiary. If you designate multiple beneficiaries, any amount will be distributed equally among them. Plan C Joint Life Designated Amount to Beneficiary The retiree can designate a set percentage or amount for the beneficiary for the beneficiary s life. This cannot exceed whatever the retiree received; but, if an amount is designated, the minimum must be $100 a month. Federal tax law may require a different minimum amount; in this case the benefit estimate will show the correct minimum amount allowable. Plan D Joint Life Same Amount to Beneficiary Plan D provides the same gross monthly amount to the beneficiary that the retiree was drawing at the time of death. Due to federal tax law, if there is too great a difference in the ages between the retiree and a beneficiary other than a spouse, this plan may not be available. Plan E Guaranteed Allowance Retirees may guarantee beneficiary protection for a limited period of time under Plan E. Several options are available as to the period of time - 5 years, 10 years, 15 years and other periods are available upon request. The gross monthly amount to the beneficiary is the same as the retiree was receiving at the time of death. Beneficiary protection is guaranteed, however, only for the period of time chosen, and begins with the retiree s effective date of retirement. If you designate multiple beneficiaries, the amount payable is the remaining annuity discounted to its present value and will be paid in a one-time lump sum equally among them. If you select this plan you will be sent a separate form for designation of beneficiaries. This form must be received by SERS before benefits are paid. This plan cannot be changed under any circumstances. Plan F Joint Life Multiple Beneficiaries You may name up to four persons to receive monthly benefits upon your death. Each additional beneficiary named will reduce your own pension. You must designate a percentage of your monthly pension OR a flat dollar amount for each beneficiary. The amount designated cannot be less than 10% unless required by a court order, and the amount for all beneficiaries cannot exceed 100%. If you are required by a court order to provide a benefit for an ex-spouse, include a copy of the court order. If you select this plan, you will be sent a separate form for designation of beneficiaries. This form must be received by SERS before benefits are paid. Service Retirement Guide 13

19 Guaranteed Allowance Plan E If you are considering Plan E, please remember these important facts: The pension will be paid to you for life. The guaranteed period (5, 10, or 15 years or other years as requested) begins with the effective retirement date, not your death. Beneficiary payments will stop at the end of the guaranteed period. A separate form is required for a selection of Plan E and the designation of all beneficiaries for this plan. If you wish your spouse to be first, he or she must be renamed on this separate form. Failure to complete this form properly will delay or even possibly void the selection of this plan. If you choose Plan E on your Retirement Application, this form will be sent to you automatically. Your retirement cannot be processed until SERS receives your beneficiary form. You can name more than one beneficiary on Plan E. If there are still years remaining on the guaranteed period at the time of your death, the lump sum present value will be split among your beneficiaries. No monthly benefit is available to multiple beneficiaries. Health Care Coverage Aside from providing income for a beneficiary, another advantage of choosing a Joint Life Plan is the current ability to continue a beneficiary s health care coverage. To provide health care coverage for your beneficiaries after your death, you must select Joint-Life Plan A, C, D, or F. Your spouse and your children are the only beneficiaries who can be eligible for SERS health care coverage. Any other named beneficiary will receive pension payments, but not health care coverage. Health care premiums are deducted from your monthly pension payment. Upon your death, your beneficiaries receive monthly pension payments. Their health care coverage premiums would be deducted from their pension payments. Eligible beneficiaries can continue to receive SERS health care coverage as long as they pay the premiums. SERS reserves the right to change or discontinue any health plan or program. For more information, please see the Dependent Coverage section under the Member Health Care Guide. You can also call SERS at or healthcare@ohsers.org for more information. Partial Lump Sum Option Payment (PLOP) In addition to selecting a payment plan, you may take part of your pension in a one-time Partial Lump Sum Option Payment (PLOP) which will permanently reduce your lifetime monthly pension. The PLOP amount: May be from 6 to 36 months of your unreduced pension, but it cannot reduce your original pension more than 50%. Must be taken at retirement. 14 School Employees Retirement System of Ohio

20 SERS can provide you with estimates of your pension with and without a PLOP amount. You should consider this option carefully to decide whether a partial lump sum amount is worth a permanent reduction in the regular monthly pension. If you select a PLOP, it will not be paid until SERS receives all required information from your employer. Please be patient, as there may be a delay of 60 to 90 days after your effective date of retirement. The PLOP is subject to 20% federal income taxes and is withheld automatically. Taxes may be avoided if the PLOP is rolled over to a qualified plan. If you select a PLOP, you will receive detailed information about federal taxes and the rollover option. If you wish to have Ohio state taxes withheld, please contact SERS for the necessary form. Retirees under the age of 59½ may also be subject to an additional 10% federal tax penalty unless the PLOP is rolled over. If you are subject to the Social Security Government Pension Offset or Windfall Elimination Provision, the Social Security Administration will calculate your reduction based on the unreduced pension amount, which is the amount of your SERS pension if you did not choose a PLOP option. For more information, please see the Social Security section on page 18. Spousal Consent If you are married and choose a plan of payment other than Plan A, written consent from your spouse is required. This must be done on the Service Retirement Application and must be signed in the presence of a notary public or a SERS employee. If your spouse will not consent to the plan choice, SERS will pay you according to the Plan A monthly amount. You must advise us in writing if your spouse will not sign the consent. The spousal consent requirement may be waived if your spouse s whereabouts are unknown, if he or she is medically unable to give consent, or if a guardianship has been established for your spouse. Please contact SERS for documentation requirements. Your retirement cannot be processed until SERS receives the signed spousal consent, you have notified us that your spouse will not give consent, or until the appropriate affidavits have been filed. If you are selecting a PLOP, a spousal consent is required. Same-sex Spouses To comply with the U.S. Supreme Court decision in Obergefell v. Hodges, the SERS Retirement Board approved a rule at its July 2015 Board Meeting recognizing same-sex marriages, as well as those performed before June 26, 2015, in a state that recognized them. Same-sex spouses can be enrolled in SERS health care coverage if they meet the requirements for dependent coverage. Service Retirement Guide 15

21 16 School Employees Retirement System of Ohio

22 Members Doug Pringle and Michael Collins Social Security Social Security and SERS The Government Pension Offset (GPO) The Windfall Elimination Provision (WEP)

23 Social Security Social Security and SERS If you are a SERS retiree and are also eligible for a Social Security benefit, your Social Security benefit may be affected by federal laws. Your Social Security benefit may be reduced by either the Government Pension Offset (GPO) or the Windfall Elimination Provision (WEP). These laws do not affect your SERS pension benefit; they affect only your Social Security benefit. Your SERS pension is not reduced because of these federal laws. The following is provided as general information. For more detailed information on the GPO and WEP and how they may affect your specific Social Security benefit, you should contact your Social Security Administration (SSA) local office, visit the SSA website at or call SSA at The Government Pension Offset The Governmental Pension Offset (GPO) affects SERS retirees who are, or will be, receiving a Social Security benefit based on their spouse s Social Security account. This includes qualifying on an ex-spouse s account. The GPO does not apply to the spouse s own Social Security benefit. It does not affect Medicare coverage. The GPO applies to a SERS retiree who was first eligible to retire from SERS after July 1, 1983, and who receives Social Security spousal benefits. How the GPO Works The amount of your Social Security spousal benefit is reduced by two-thirds of the amount of your SERS benefit. The following is an example: Your SERS monthly benefit is $600, and you are entitled to a $500 Social Security spousal benefit. Two-thirds of your SERS benefit is $400, which when deducted from your Social Security benefit, leaves you with $100 in a Social Security benefit and your $600 SERS benefit. Depending on your gross SERS pension amount, the GPO could eliminate your entire Social Security spousal benefit. Please notify the Social Security Administration (SSA) when your SERS pension benefit begins. Failure to do so could result in costly back payments due to Social Security. When you receive cost-of-living adjustments or other increases in your SERS pension benefit, you must report these to the SSA. These increases will result in a new GPO calculation and further reduction in your Social Security benefit. Please contact SERS for verification of your cost-of-living adjustment. 18 School Employees Retirement System of Ohio

24 The Windfall Elimination Provision The Windfall Elimination Provision (WEP) affects SERS retirees who are, or will be, receiving a Social Security benefit based on their own Social Security employment record. If you had a private sector job and were contributing to Social Security for that job, the WEP will affect the Social Security benefit you would receive based on the private sector job. If you have 30 qualified years or more of earnings under Social Security, or you were eligible for either your Social Security or SERS benefit before 1986, the WEP will not affect your Social Security benefit. The following chart shows what earnings make a qualified year. Year *$ , , , , , , , , , , , , , ,550 How to Figure Your Years of Coverage You are credited with a year of coverage if your earnings equal or exceed the figures shown for each year in the following chart. Wages Needed For Year of Coverage Year Wages Needed For Year of Coverage 1982 $ 6, , , , , , , , , , , , , , , ,150 Year Wages Needed For Year of Coverage 1998 $12, , , , , , , , , , , , , , , ,050 *Total credited earnings from are divided by $900 to get the number of years of coverage (maximum of 14 years). How the WEP Works The WEP modifies the formula that the Social Security Administration (SSA) uses in calculating a Social Security benefit depending on the number of years a person has Social Security. To find out how the WEP might affect you, go to the SSA website at or call Service Retirement Guide 19

25 Member Mark Williamson 20 School Employees Retirement System of Ohio

26 Member Suzanne Speyer Filing Your Application The Application Process Completing Your Retirement Application Retirement Application Checklist

27 Filing Your Application The Application Process In order to retire and begin receiving a monthly pension, you must complete and return a Service Retirement Application. It must be completely filled out and signed by you, and if necessary, by your spouse. The application must be returned with all the necessary documents. See the Required Document Checklist on page 31. Once SERS receives your application, you will be sent a handout explaining the retirement process. SERS also will notify your employer that you have applied for retirement and the expected date of retirement. You must notify your employer in writing of your retirement date. If you work or receive paid leave beyond the date you stated on your application, your retirement date will be delayed and your pension will be affected. If you indicated on the application that you wish to obtain additional service credit for which you may be eligible, SERS will notify you by mail of your cost to purchase any service credit. You must purchase all service credit prior to your effective retirement date. No retirement is official until all forms have been completed, returned, and approved by SERS. You should begin your retirement application process at least 90 days before your intended date of retirement. If you die before the effective date of your retirement, your retirement will not take effect and your account will be processed as if you died while still working. This would be considered a survivor benefit. Completing Your Retirement Application This application must be typed or completed in INK, signed, and returned to SERS. No retirement will be approved until all forms are completed and returned to SERS along with any necessary documents. The following information will help guide you through each section of the application. A sample application appears on pages Personal Information Complete all the personal information requested. We need your telephone number and address so that we can contact you if necessary. 2. Retirement Information The date of your last service is the last date you were paid, whether for regular or substitute service, including used vacation or used sick leave. The date you provide for the service retirement effective date must be the first of a month. If you have a question regarding your service retirement effective date, please call SERS. 3. Payment Plan Choice Check only one payment plan. Please list a beneficiary unless you are selecting Plan E or F, or multiple 22 School Employees Retirement System of Ohio

28 beneficiaries. If you select Plan E or F, or wish to designate more than one beneficiary under Plan B, SERS will send you a beneficiary form to complete. 4. Health Care Application / Waiver You must have at least 10 years of qualifying service credit to be eligible for SERS health care coverage, and you must complete this form. For more information, see the Member Health Care Guide. To waive coverage, complete Section A. If you do not want to enroll, the waiver section must be completed. Otherwise, you will automatically be enrolled in a health care plan. To enroll in coverage, complete Section B. SERS will deduct the premiums from your monthly benefit payment. 5. Direct Deposit Form When you apply for retirement, you will be required to complete a Direct Deposit Form. Retirement benefits are only paid by electronic transfer to savings or checking accounts. Direct deposit is safe, easy to set up, and convenient. Benefits of using direct deposit include: Dependability your money will be in your account on the first business day of the month Peace of mind your money will be safely and securely deposited into a bank account on days when you are out of town or unable to get to the bank Value it is a free service that saves you time and money, and saves SERS money on printing and mailing costs Please complete a Direct Deposit Form so that your pension payment can be sent directly to your bank or other financial institution. Attach a voided check if the direct deposit will be to a checking account; do not attach a deposit slip. If the direct deposit is going to a savings account, provide only the account information. 6. Spousal Consent If you are married, and you do not select Plan A with your spouse as the beneficiary, and/or you select a PLOP, then your spouse must sign the consent section in the presence of a notary public or SERS employee. Your current spouse does not have to sign if you are under a court order to select a payment plan naming your exspouse as a beneficiary and choose Plan F designating only your ex-spouse and current spouse as beneficiaries. 7. Your Signature Please remember to sign the application in ink. If any information on the application changes after you apply, notify SERS immediately. You may withdraw your application at any time before you receive your first benefit payment by notifying SERS in writing. Service Retirement Guide 23

29 Retirement Application Checklist Before you mail your retirement application to SERS, check to see if you have: Written in your retirement date Selected a beneficiary and a plan of payment Completed the Health Care Application / Waiver If you are not taking health care coverage, have you signed the waiver? If you are taking health care coverage, have you selected a health care plan Completed the Direct Deposit Form and signed on the bottom Completed the PLOP selection Made sure your spouse has completed the spousal consent (if applicable) If you select a PLOP, the spousal consent must be signed. Spousal consent must be signed in the presence of a notary public. Signed the Service Retirement Application Provided phone number and address RETIREMENT DOCUMENT CHECKLIST Please ensure that the following information is enclosed with your application and that your current name is written on the document copies: Birth certificates (copies only) Yourself Spouse for Joint Survivor plans A, C, D, or F and/or health care coverage Non-Spouse beneficiary for Joint Survivor plans C, D, or F Spouse and dependents you want to enroll in SERS health care at retirement Proof of your marriage to your current spouse by a copy of your marriage certificate Mandatory Direct Deposit Form Copy of voided check for direct deposit to your checking account Copy of Medicare card Self Spouse 24 School Employees Retirement System of Ohio

30 Retiree Jeffrey Smith Once You ve Retired About Your Retirement Payment Cost-of-Living Adjustment (COLA) Power of Attorney and Guardianship Taxes Reemployment Support and Division of Property Orders Death Benefit

31 Once You ve Retired About Your Retirement Allowance Payment Direct Deposit Direct deposit is required for all SERS retirees. Direct deposit of your funds is the only way to assure that your payment will be available on the first of every month. Your First Retirement Payment You may be eligible to receive an estimated payment if SERS receives the following at least 30 days before your retirement effective date: your fully completed retirement application, and necessary birth certificates, marriage certificates, a completed Direct Deposit Form, and any other required documentation Your estimated retirement allowance payment will be based on payroll and service credit information posted through your last completed fiscal year (July 1 - June 30). Once your employer reports all final pay figures, SERS will finalize your monthly retirement allowance and notify you of the final amount. If the final calculation of your retirement allowance is greater than the estimated amount, we will send you another payment that covers the difference. If you select a PLOP, it will not be paid until SERS receives all required information from your employer. Please be patient, as there may be a delay of 60 to 90 days after your effective date of retirement. Monthly Payments After your initial payment, all payments will be available on the first of every month. SERS sends a quarterly Focus publication, which will include a quarterly statement detailing your current gross monthly allowance and deductions, and these amounts for the year-to-date. You also will receive a statement if there are any changes to your monthly payment amount, such as when you receive a cost-of-living increase. Changing your Plan of Payment If you choose to change your plan of payment, PLOP selection, or retirement date, you must return your payment, submit a notice in writing that you want to cancel your initial application, and submit a revised Service Retirement Application within 30 days of the initial payment date. Keeping Your Information Current When you write to SERS, please make sure to give your full name and the last four digits of your Social Security number. Also, make sure you advise SERS of any change in address. Even if SERS deposits your check directly into your bank account, we still need your current home address. You also must notify us when circumstances change, such as the death of a spouse if the spouse was covered by our health plan, or if you chose a Joint Life plan of payment. 26 School Employees Retirement System of Ohio